The FTSE 100 closed sharply lower on Friday, 6 November, as global stock markets remained under pressure following a steep sell-off in US technology shares, although a recovery on Wall Street helped London’s blue-chip index recover much of its earlier losses.
The FTSE 100 finished down 108.7 points, or 1%, at 10,673, having fallen as much as 254 points, or 2.35%, to around 10,528 during a turbulent morning session. The recovery meant Britain’s leading share index avoided its worst daily percentage decline since March, when the outbreak of the Iran conflict triggered widespread market volatility.
The FTSE 250 fell 1.13% to 24,423.93, just one day after reaching an all-time intraday high, as a global equity sell-off weighed on London’s medium-sized companies.
The decline represents a sharp reversal in sentiment after the index climbed to a record intraday high of 25,176 points on Thursday, before retreating as selling pressure spread from Wall Street into European markets.
The FTSE 250 has fallen 752 points from Thursday’s peak, highlighting the scale of the reversal across two trading sessions.
London stocks initially followed Thursday’s dramatic Wall Street rout, which saw the Nasdaq Composite plunge 5.5% as investors questioned the sustainability of artificial intelligence valuations and the enormous investment being directed towards data centre infrastructure.
Concerns about potential regulatory scrutiny following the Democrats’ victory in the US midterm elections added to the uncertainty, particularly for semiconductor manufacturers and companies heavily exposed to AI investment.
However, US technology stocks staged a partial recovery on Friday, helping improve sentiment across European markets.
By the London close, the Nasdaq Composite was trading 1.5% higher, while the broader S&P 500 had gained 0.7%, providing some relief after Thursday’s heavy losses.
Despite the improvement, European equities remained firmly in negative territory. Germany’s DAX declined 2%, France’s CAC 40 fell 0.8%, Spain’s IBEX lost 0.6% and Italy’s FTSE MIB dropped 0.9%.
Asian markets had experienced even sharper declines earlier in the day, with Japan’s Nikkei 225 plunging 6% and South Korea’s Kospi falling more than 6.5%, reflecting the heavy exposure of both markets to semiconductor and technology companies.
The Bank of England’s decision to raise interest rates to 4% on Thursday also weighed on UK investor sentiment, as policymakers warned that inflationary pressures remained sufficiently persistent to justify tighter monetary policy.
The Monetary Policy Committee voted 8–1 to increase Bank Rate by 25 basis points from 3.75%, marking the first increase in more than three years.
The sole dissenting member supported a larger 50-basis-point increase to 4.25%, highlighting concerns about the risk of inflation becoming more deeply embedded in the economy.
The Bank said that recent economic activity had generally been stronger than anticipated, reinforcing the case for a modest increase in borrowing costs.
Higher interest rates could place additional pressure on mortgage holders, consumer spending and business investment, particularly as households continue dealing with elevated energy costs and uncertainty over the economic outlook.
Corporate developments also attracted attention across European markets.
Novartis shares declined 0.9% in Zurich following reports concerning potential safety risks associated with its Zolgensma gene therapy, which is used to treat spinal muscular atrophy.
According to Bloomberg, nine tumour cases have been reported among more than 6,000 patients treated with Zolgensma across clinical trials, other programmes and commercial use since the therapy’s approval in 2019.
Novartis said two cases showed evidence of a possible link to the treatment, while emphasising that it continues to review safety reports and monitor affected patients.
The company confirmed that the potential risk of tumours associated with vector integration is already included in the medicine’s prescribing information.
The reported findings do not establish that all nine cases were caused by the treatment, and further clinical evaluation remains important.
ING Group shares fell 1.7% in Amsterdam following a Bloomberg report that the Dutch bank was seeking buyers for approximately $500 million of data centre-related loans.
The reported portfolio includes exposure to infrastructure associated with major AI developments, including a $25 million loan participation linked to a New Mexico site within the Stargate initiative, alongside financing connected to Vantage Data Centers and CyrusOne.
The reported sale process comes amid increased investor scrutiny of lending and capital expenditure associated with large-scale artificial intelligence infrastructure.
ING had not publicly confirmed the reported transaction in the information available.
Meanwhile, Ascendis Pharma reported a positive regulatory development for its once-weekly TransCon CNP treatment for children with achondroplasia.
The company said the European Medicines Agency’s Committee for Orphan Medicinal Products had recommended maintaining the treatment’s orphan medicinal product designation.
If European marketing authorisation is granted, the designation could provide 10 years of market exclusivity, subject to applicable regulatory conditions.
A final European Commission decision on the marketing authorisation application is expected during the fourth quarter.
Friday’s trading highlighted the continuing volatility across global financial markets, with concerns about AI valuations, rising borrowing costs and political uncertainty triggering significant movements in equities.
For London investors, the FTSE 100’s recovery from a 2.35% intraday decline to a 1% closing loss provided some relief, although the index still finished the week under considerable pressure.
Attention will now turn to whether Wall Street’s technology rebound can continue into next week, alongside developments in global interest rates, artificial intelligence investment and the wider economic outlook.
